- VEA has underperformed SPY since inception, but its portfolio is most likely undervalued.
- While the portfolio is heavily diversified and weighted returns on equity are not exciting, the fund is fundamentally inexpensive.
- While VEA might not necessarily rebound relative to SPY, it could do so if global investors were to take note, and close the valuation gap.
- VEA is a decent risk diversifier, and risk reducer, especially for U.S. investors concerned about local and current equity valuations.
For further details see:
VEA: International Equities Are Undervalued